Entrepreneurial Behaviour in Family Education

7/30/2019 Entrepreneurial Behaviour in Family Education

1/26

Entrepreneurial Behaviour in Family Education

Families have the economic function as expressed bySudjana D., (2004:59), namely: give meaning to that family is the economic activitiesrelated to efforts to make a living, foster and develop thefamily business, revenue and expenditure planning afamily. In turn, activities and family economic statusaffects the expectations of parents and children about thefuture of their lives conomic function in the familybecomes a factor that could affect the economic activitiesof other family members, if the household has theentrepreneurial activity, then it becomes a factor thatcan foster entrepreneurship activities for familymembers, or other family members learn to people in thefamily and the environment so it became a hobby for lifeexperience and entrepreneurial behavior.

A. Pekkala, and Pakkanen TR., Cited by Kyro P., and K.Ristimakki, (nd: 7) write an article on Generatingentrepreneurship and new learning environment fromstudents free time activities and hobbies, explaining thatone of them influenced the behavior of entrepreneurs byfamily members, it is described in the article servetargeted, namely: growth to entrepreneurs throughthe process of life experiences trianggulation Such asfree-time activities and hobbies, entrepreneur education,socialization within ones family, student learningenvironment create Their Own, and teaching practices .Experience of living in a family environment that have

1


2/26

entrepreneurial activity, that among the family memberswho have a business and distribution, called for a look,and taught him to other family members or

entrepreneurial economic activity has become animportant factor for individuals or groups of people indeveloping behavior entrepreneurship. Because theexperience of living within ones family, to bring theimpact of efforts to develop entrepreneurial behaviorthrough the time-time and run free to indulge his hobbyin entrepreneurial activities.Wirasuaha behaviors that exist in the familyenvironment can diakatakan as a family-ownedorganization that can give birth to the dynamics(Leaning organization), although the pattern is simple todo but have a large effect on entrepreneurial behavior of other family members. Abdulhaq I., (1999:202)explanation of entrepreneurial behavior are applied inthe management approach and organizational learning

paradigm in essence stated: organizational learning (learning organization) is alearning process that is realized through the experienceand behavior of individuals, with expectations of anincrease in knowledge, creativity, and entrepreneurialladies abi (= entrepreneurship) and the economic andorganizational performance (= family), the pattern of organizational learning is also developed in learning thatis innovative in terms of learningBehavior of entrepreneurial families with a tradition of smallbusinesses in the household environment, family normsin the form of economic activity habits of the family,ranging from aspects of production, consumption and

2


3/26

distribution. The third aspect of the implications for thebehavior of family and entrepreneurial life into mattercontent of entrepreneurial learning in family education.

Entrepreneurial behavior in family learning is identicalwith, the learning process refers to the application of the principles of Andragogy either the planning,implementation, methodology, time, materials andevaluation, together with experience, or life tasks and itsrole as a (= a family member). (Abdulhaq.I, 1999:207).Behavior entrepreneurial family characteristics is notvery consumptive, meaning the income derived fromactivities of daily living are not looking directly spent onstudying the daily necessities of life, but the fathersmother or other family members tried to suppress theexpenditures of families living anggara used or played tothe interests of businessThe main purpose of entrepreneurship in the family is to maintain theeconomic conditions of families in addressing the needs

of everyday life. Defense, (1997:62) stated that: thefamilys economic resilience lies in the dynamics of thepotential and conditions to maintain continuityperkeonomian akeluarga, the more equitabledistribution of income and participation in theproduction of income showed the economic resilience of the better The characteristics of entrepreneurial familiesin running their business activities are as follows:a. Trying to suppress the income only keperluasconsumptive.b. Always open communication with others, because it isconsidered as a relation that can improve their business.c. Coined the family-scale productive independent

3


4/26

business (small and micro).d. Utilizing a home environment where he lives orelsewhere for business.

e. Harness the potential that exists around the householdenvironment as the production of materials that can addto family incomeSudarmanto G., et al., (1998:33)menggaambarkan situation of farm families who have abusiness, it is said that: opening a business should bearound in the yard so you can easily control and can beinterspersed with other kegiata home such as cooking,keeping house, raising children, because my husbandalso has activities outside the home are not the sameactivities Entrepreneurial family is also indicated bythe Womens Labor Force in the informal sector in theresearch report Suryadi ET., Wiyono, and Sofiarini A.,(1997:10) stated: urban informal sector women aregenerally engaged in trade, especially food, as pnjual (egvegetables), street vendors, or shop keepers (eg, food

vendors, along with other food koi), they are alsoinvolved with the processing of food at home, for latersale . Dikekola diner migrant women also amelayanishuttle bachelor who works in the field of informaltransport and also provides other services to theinformal sector Psychological conditions such as social environmentaffects behavior of entrepreneurs all family members inthe household, especially if the parents (father andmother) do not manage the business as a sideline andtherefore contributes to social change, especially thebehavior of individuals within a family or a group(community) in surrounding areas due to the influence of

4


5/26

parents. Zaltman et al., (1972:22) stated that socialchange is: as a planed attempt to modify the attitudeand behavional of the target individuals or groups by

agencies of change seeking to introduce ideas,Innovations in to a social system in order to Achieve theGols of the agencies or contituencies.Family as an educational fathers mother is an agent of the main changes that have aspirations to shape thebehavior and attitudes of their children in accordancewith the vision and the existing pattern of life. Basics of Measuring Behavior

The challenge is to know what kinds of behavior describes the work of entrepreneurs. In fact, itis wrong to use behavior theory concepts used for managers and leaders, because entrepreneursare in a distinct field. In measuring behavior, two approaches can be used: theoretical, andempirical.

Theoretical Approach to Behavior Measurement

One can use general theories to describe human behavior, such as Skinnerian behaviorism, butthe best kind of theories to use are the middle range theories. These middle range theories are

good because they were not made specifically for certain disciplines in business. We can tweak and augment these theories to have a set of useful, measurable, and specific behaviors describingentrepreneurship. The author suggests the dramaturgical approach of Role theory, a mid-rangetheory, which studies social setting behavior. This theory uses concepts such as props, front stageand backstage, and another theory by Katz & Kahn about models and roles can be used toreinforce the use of this theory.

Empirical Approach to Behavior Measurement

This approach is closest to what was used for this study. A process that was modeled fromStogdill & Coons, 1957, was used. In this model, a measurement of leadership behavior was

made, called the LBDQ, or Leader Behavior Description Questionnaire. This is composed of 150items, each of which links to 9 dimensions which were formulated by Ohio scholars after theyfigured out which behavior dimensions linked to leadership theories. Furthermore, empiricalstudies eventually lead to just two dimensions for leadership behavior, which were Considerationand Initiating Structure.

Chunk Size5


6/26

Aside from the concern of knowing the right dimensions for entrepreneurs behavior, chunk sizeis also important. This means, what behaviors are entrepreneurs observed to be doing always,frequently, sometimes, etc. The following theories in psychology are used to determine thischunk size: Taxonomic structure of events, Event perception theory, and Construal level theory.Taxonomic structures are used to classify behaviors in terms of kind-of relationship (a dog is a

kind of animal), and this theory can be used in this study to determine basic level behaviors for the start up of entrepreneurs as they go into new ventures. Event perception theory uses a part-of relationship, and psychologists use this theory to define events, which are time segments that

begin and end in specified times. This has several uses in the model of describing activitiesrelated to entrepreneurship experiences. The problem of course is that not all behavior stops or ends in specified times, but it is suggested that shorter time frames can be used, because theytend to have better memories of events. The characterization of behavior in this theory is basedon hierarchy levels. The higher levels ask the more abstract questions of why, and the lower levels are specified to answer how questions. For example, increasing security in a building ishigh level, while shutting the building door is low level. In studying behavior, scholars analyze

behavior in different segments which follow a hierarchical model similar to the Construal theory.

Summary

To summarize, measuring an entrepreneurs behavior can be achieved by beginning with severalcategories based from observational methods. We also need to have a set of behaviors that applyto entrepreneurs as they start their entrepreneurship. We need to use the right theories from

psychology, and behavior should be a function of time.

EPRENEURIAL BEHAVIOR:

A preference for changing the status quo over maintaining it based on relatively greater satisfaction generated by novel information over redundant information. Entrepreneurial

behavior underlies the inclination to undertake invention and innovation, including the creationof something new as well as the distribution and adoption of the new throughout society. It is the

behavior most likely exhibited by entrepreneurship. An alternative is managerial behavior, whichis a preference for maintaining the status quo over changing it.

Entrepreneurial behavioral is one of two behavioral alternatives underlying the desire toundertake innovations and to change the status quo. The other is managerial behavior.Entrepreneurial behavior embraces innovation, is motivated to seek changes in the status quo,draws satisfaction from institutional changes. In contrast, managerial behavior is a preference for maintaining the status quo.

The underlying source of entrepreneurial behavior is a relative preference for novel informationover redundant information. Both types of information are important to the fight or flightresponse to a threat. Novel information reveals potential threats that results in automatic

physiological responses, which is more satisfying to some than it is to others.

Entrepreneurial behavior is a preference for innovation and a change in existing institutions andthe status quo. It can be as simple as the willingness to buy a new electronic gadget or as

6


7/26

involved as rebelling against the existing political regime and starting a new nation. It oftensurfaces in the form of an entrepreneur undertaking the risk of organizing production andlaunching a new business venture.

Fight or Flight

An understanding of entrepreneurial behavior requires a look at the fundamental, physiologicalresponse to potential threat, what is called fight or flight. The human body automatically

prepares itself to fight off a potential threat to flee away from it. Respiration increases. Pupilsdilate. Brain wave activity increases. Adrenalin is pumped through the body. Heart rateincreases. The human body is primed and ready to recognize the threat and to respond.

The key to this automatic response is achieved by distinguishing between what's new anddifferent and what's old and familiar. The old and familiar is less threatening that the new anddifferent. The human brain sorts between two different types of information that comes throughthe five senses (sight, hearing, touch, taste, and smell), attempting to discern the potential for

danger -- novel information and redundant information. Novel : This is new information. An unusual sight. A strange sound. An unexpected

touch. A bizarre taste. An uncommon smell. The human brain takes immediate note of this information. Because it is unfamiliar, it might be threatening. This is information thatneeds to be identified quickly. It needs to stand out from the ordinary and familiar. Aself-preservation reaction (fight or flight) might be needed.

Redundant : This is familiar information. A common sight. A routine sound. A ordinarytouch. A recognized taste. An everyday smell. The human brain is wired to largely ignore

this information. Because it is familiar, it is not threatening. It is the background canvasupon which novel information is displayed.

Redundant and novel information are both intrinsically satisfying. A little bit of excitement issatisfying (think a roller coaster ride). But so too is a little bit of piece and quiet (think restingafter a hectic vacation). However, nothing but redundant information is incredibly boring and not

particularly satisfying. And nothing but novel information is anxiety inducing, and also not verysatisfying. Too much of one or the other is not a pleasant situation. A combination of the two ismost enjoyable. It can maximize satisfaction.

However, different people have different preferences over the proper mix of novel and redundant

information. Some prefer relatively more new and less old. Others prefer relatively more old andless new.

These individual differences give rise to entrepreneurial and managerial behavior. Those who prefer relatively more redundant information and relatively less novel information tend to pursuemanagerial behavior. Others who prefer relatively more novel information and relatively lessredundant information tend to pursue entrepreneurial (and innovative) behavior.

7


8/26

A Preference for Change

Entrepreneurial behavior is a preference for changing the status quo over maintaining it.Entrepreneurial types embrace innovation. A change in institutions generates satisfaction for theentrepreneurially inclined. Keeping things structured and orderly is not nearly as satisfying.

Entrepreneurial behavior has a relative preference for novel information over redundantinformation.

Entrepreneurial behavior surfaces in a number of ways throughout society:

Entrepreneurship : One notable manifestation of entrepreneurial behavior isentrepreneurship , the scarce resource that undertakes the risk of organizing production. Inmany cases, not all but many, entrepreneurs are motivated by the desire to producesomething new, to change the status quo. Entrepreneurship might be engaged in theinnovation of a new product. It might be utilizing a different method of production or marketing. However, it's also possible that the entrepreneur is doing nothing more than

launching a new business to sell an existing product using existing production techniques. Nothing new, nothing novel, no change in the status quo.

Innovation : Entrepreneurial behavior is also key to innovation, the process of applyingand disseminating new products, ideas, and institutional changes throughout society. Theentrepreneurial desire for change goes hand in hand with the innovation process. It's seen

both with those who initially launch the innovations (the sellers) as well as those who arefirst to adopt the innovations (the buyers). Both sides need the inclination to change thestatus quo to be part of the innovation process.

Invention and Creation : The starting point for most innovation is invention, the act of creating the something new. The invention is perhaps the purest form of entrepreneurial

behavior. Creating something new just for the sake of creating something new. The act of invention includes the standard creation of a new product (think a device thatautomatically ties your shoe strings), as well as the creation of a new idea, scientifictheory, painting, poem, song, novel, computer program, or video game. Many artists,writers, musicians, and computer programmers have a strong entrepreneurial inclination.

Fashion Trendsetters : Another common example of entrepreneurial behavior is those at

the forefront of the latest fashions and fads. Trendsetters are commonly motivated by thedesire for change, the need to be different, the inclination to break away from the statusquo. The fashion in question is not just clothing, but also includes home furnishings,automobiles, electronic gadgets, and entertainment, to name a few.

Political Revolution : Changes in existing social and political orders are perhaps amongthe most historical manifestations of entrepreneurial behavior. The creation of the United

8
http://pop_dsp%28%27pop_gls.pl/?k=entrepreneurship%27,500,400)http://pop_dsp%28%27pop_gls.pl/?k=entrepreneurship%27,500,400)


9/26

States in the late 1700s is a prime example. So too is the Russian revolution of the early1900s. The revolutionaries behind both, and many others, exhibited a significant amountof entrepreneurial behavior.

Life : Entrepreneurial behavior also surfaces in assorted nonspecific actions that make updaily life. The desire to periodically take a new route to work is an example. Another isthe compunction to rearrange furniture. A third example is to occasionally try a differentrestaurant or sample a new cuisine. The changes can be seemingly trivial parts of anotherwise unchanging status quo life.

The Managerial Alternative

The alternative to entrepreneurial behavior is managerial behavior. Managerial behavior is a preference for maintaining the status quo over changing it. Managerial types resist innovation. Achange in institutions does not generate satisfaction. On the contrary, satisfaction is best

achieved from keeping things structured and orderly. Managerial behavior displays a relative preference for redundant information over novel information.

This behavioral alternative is well suited for keeping an existing business running smoothly andefficiently. As the name suggests, managerial types are inclined to manage, to administer, toapply existing rules and procedures. They are not absolutely opposed to change, but the changeneeds to be orderly and within the rules.

While managerial behavior is not conducive to creating an invention or launching an innovationthroughout society, once the innovation has taken hold and becomes part of the fabric of society,it takes hold. It promotes the now "old" innovation, getting the most benefit possible. Those who

are managerial inclined might not favor product innovations (new products), but processinnovations (new ways of making existing products) are acceptable.

A Continuum

Like much of life, the inclination toward managerial or entrepreneurial behavior is seldom one or the other. Most people have a combination of each and few exhibit either in the extreme or in allaspects of their lives. One person might be entrepreneurial in business, but managerial at home.Another person might be just the opposite. Each might fulfill the desire for in one activity, then

be satisfy with the status quo in other activities. NTREPRENEURSHIP:

A special sort of human effort that takes on the risk of bringing labor, capital, and land together and organizing production. This is one of four basic categories of resources, or factors of production. The other three are labor, capital, and land.

Entrepreneurship is the factor of production that assumes the risk and faces the uncertainty of combining the other three resources and engaging in production. Without entrepreneurship, theother resources remain idle and unproductive.

9
http://pop_dsp%28%27pop_gls.pl/?k=production%27,500,400)http://pop_dsp%28%27pop_gls.pl/?k=production%27,500,400)http://pop_dsp%28%27pop_gls.pl/?k=risk%27,500,400)http://pop_dsp%28%27pop_gls.pl/?k=uncertainty%27,500,400)http://pop_dsp%28%27pop_gls.pl/?k=uncertainty%27,500,400)http://pop_dsp%28%27pop_gls.pl/?k=production%27,500,400)http://pop_dsp%28%27pop_gls.pl/?k=risk%27,500,400)http://pop_dsp%28%27pop_gls.pl/?k=uncertainty%27,500,400)


10/26

A Risky Job

The real world runs rampant with risk and uncertainty. Except for a few psychics, no one knowswhat the future holds. Life is a risky proposition for all resource owners. Injury or sickness might

befall a worker. Fires or angry mobs might destroy capital. Floods or natural disasters might

decimate land. Such events threaten the productivity of these resources.

Risk and uncertainty, however, take center stage for entrepreneurship. In that productionnecessarily occurs before consumption , an entrepreneur who organizes production never knowsfor certain that the goods produced will be desired by potential consumers. Herein lies the risk and uncertainty of entrepreneurship. A successful entrepreneur, one who guesses public

preferences correctly, is very likely to make oodles of profit . However, the entrepreneur whoguesses wrong runs the risk of great loss.

The Prospect of Profit

This dangling carrot of profit provides entrepreneurship with the incentive to produce goods,organize production, and seek ways to satisfy wants and needs. This is one of the key drivingforces behind economic growth and a higher standard of living. It also helps drive resources toan efficient allocation.

The prospect of a reward for undertaking the risk and uncertainty of organizing production isonly one type of profit. Consider these assorted types:

Monopoly Profit : This is the profit obtained due to market control , or monopoly power,which means a firm can charge a price that exceeds the opportunity cost of production. Afirm with market control, especially a monopoly, faces little risk.

Normal Profit : This is the profit entrepreneurship foregoes from one production activity by engaging in another. This is the "going rate of profit" earned by entrepreneurship. In asense, this can be consider the baseline profit that entrepreneurship can earn withoutundertaking any exceptional risk.

Innovation Profit : This is the profit entrepreneurship receives as compensation for undertaking innovative activity, especially developing new types of products or

production techniques. Innovation profit is closely related to profits obtained due risk and

uncertainty, but specifically aimed at the development innovations.

Organizers Not Owners

The role that entrepreneurship plays in production is frequently misunderstood. Some folkserroneously equate entrepreneurship with the ownership of capital. The two essential ingredientsof entrepreneurship are risk and organization. The ownership of other resources (labor, land, andespecially capital) is not necessary for entrepreneurship.

10
http://pop_dsp%28%27pop_gls.pl/?k=consumption%27,500,400)http://pop_dsp%28%27pop_gls.pl/?k=consumption%27,500,400)http://pop_dsp%28%27pop_gls.pl/?k=profit%27,500,400)http://pop_dsp%28%27pop_gls.pl/?k=economic%20growth%27,500,400)http://pop_dsp%28%27pop_gls.pl/?k=market%20control%27,500,400)http://pop_dsp%28%27pop_gls.pl/?k=monopoly%27,500,400)http://pop_dsp%28%27pop_gls.pl/?k=monopoly%27,500,400)http://pop_dsp%28%27pop_gls.pl/?k=monopoly%27,500,400)http://pop_dsp%28%27pop_gls.pl/?k=opportunity%20cost%27,500,400)http://pop_dsp%28%27pop_gls.pl/?k=opportunity%20cost%27,500,400)http://pop_dsp%28%27pop_gls.pl/?k=consumption%27,500,400)http://pop_dsp%28%27pop_gls.pl/?k=profit%27,500,400)http://pop_dsp%28%27pop_gls.pl/?k=economic%20growth%27,500,400)http://pop_dsp%28%27pop_gls.pl/?k=market%20control%27,500,400)http://pop_dsp%28%27pop_gls.pl/?k=monopoly%27,500,400)http://pop_dsp%28%27pop_gls.pl/?k=opportunity%20cost%27,500,400)


11/26

Clearly the entrepreneurial task can be eased if the entrepreneurship also happens to own theother resources. An entrepreneur who owns the necessary capital equipment, material inputs, and

provides personal labor has a distinct advantage over another entrepreneur who must acquirethose resources from others.

Manny Mustard, for example, is the owner and proprietor of Manny Mustard's House of Sandwich. He owns the entire operation, including all capital and land inputs. He supplieshis own labor to the restaurant. More to the point, he is also the entrepreneur who takeson the risk of organizing the entire production operation.

In contrast, Roland Nottingham is a retired businessman with a sizeable stock portfolio,including a number of shares of OmniConglomerate, Inc. This gives him ownership of afraction of the OmniConglomerate capital assets. While he is a capital owner, he is by nomeans an entrepreneur. He does not organize production and he faces about the same risk as placing his investment funds in a bank.

Entrepreneurship or Labor?

In theory, entrepreneurship is the risking-taking organizer of production. However in practice,entrepreneurship can be difficult to distinguish from labor. That is, a person can be labor todayand entrepreneurship tomorrow.

Entrepreneurship is commonly found operating small businesses, like Manny Mustard'sHouse of Sandwich. A proprietor such as Manny Mustard is both entrepreneurship andlabor. Part of the time--time spend making sandwiches, cleaning utensils--Manny isacting as labor. And part of the time--time spent ordering supplies, schedulingemployees--Manny is acting as entrepreneurship.

Entrepreneurship can also surface in other productive pursuits. Risk-taking organizers mightemerge in large corporations, government agencies, universities, and even households.

Jonathan McJohnson, a middle-manager at OmniConglomerate, Inc., assumes the risk of developing, producing, and marketing a new product by organizing corporate resources(at the risk of getting fired). Jonathan McJohnson's efforts are entrepreneurship.

George Grumpinkston, a professor at Ambling Institute of Technology, develops a newcomputer-based method of instruction (at the risk of receiving no raises and beingostracized by colleagues). Professor Grumpinkston's efforts are entrepreneurship.

In neither case does the entrepreneurship require ownership of the resources organized nor arethey likely rewarded for their efforts with profit, but the activities they perform are

entrepreneurship nonetheless. They are risk-taking organizers. Introduction

11


12/26

There are literally dozens and dozens of different definitions of the entrepreneur and theconcept of entrepreneurship. Researchers and writers often seem to pick the definition that bestfits the area they are discussing. We have explicitly linked entrepreneurship to the capability for exploiting successfully innovative ideas in a commercially competitive market. Leaving to oneside the fact that individuals working in the public and non-profit sectors can be very

enterprising, in historic and policy making terms entrepreneurship refers to business behaviour related to innovation and growth. For our purposes, entrepreneurs may be broadly defined as people who manage a business with the intention of expanding that business by applying someform of innovation and with the leadership and managerial capacity for achieving their goals,generally in the face of strong competition from other firms, large and small. The overall aim of this unit, therefore, is to provide you with opportunities to consider and reflect on the personalaspects involved in transforming an innovative idea into an entrepreneurial product.

To get the most out of this unit you will need to make notes throughout.

This material is from our archive and is an adapted extract from Entrepreneurial behaviour

which is no longer taught by The Open University. If you want to study formally with us, youmay wish to explore other courses we offer in this subject area .

Learning outcomesAfter studying this unit you should:

understand the nature of entrepreneurship; understand the function of the entrepreneur in the successful, commercial application of

innovations;

confirm your entrepreneurial business idea;

identify personal attributes that enable best use of entrepreneurial opportunities;

explore entrepreneurial leadership and management style;

identify the requirements for building an appropriate entrepreneurial team.

1 Economic function of the entrepreneurBroadly, entrepreneurs have two vital roles to play in the economy (1) to introduce new ideasand (2) to energise business processes. Strictly speaking, the term entrepreneur , which derivesfrom the French words entre (between) and prendre (to take), referred to someone who acted asan intermediary in undertaking to do something. The term was originally used to describe theactivities of what today we might call an impresario , a promoter or a deal maker. Theentrepreneur first made an appearance as a distinct economic concept in France, twenty years

before the father of economics, Adam Smith published his Wealth of Nations in 1776. Richard

12
http://www3.open.ac.uk/study/undergraduate/business-and-management/index.htmhttp://www3.open.ac.uk/study/undergraduate/business-and-management/index.htmhttp://www3.open.ac.uk/study/undergraduate/business-and-management/index.htm


13/26

Cantillon, an Irishman living in France, suggested in 1756 that the entrepreneur was someone prepared to bear uncertainty in engaging in risky arbitrage buying goods and services at acertain (fixed) price in one market to be sold elsewhere or at another time for uncertain future

prices, usually in other market (though, throughout economic history, hoarders or traders who tryto corner a market have sought super-profits in the same markets when short supplies send

prices rocketing upwards). This concept of entrepreneur as arbitrager is still relevant today butwas clearly influenced by the dominance at that time of trade as the chief means for accumulating new wealth and capital. Manufacturing and trade dominated Britain's heyday inVictorian times whereas today, as the case studies show, it is technology, knowledge andservices that provide most, though by no means all, new entrepreneurial opportunities. In other words, entrepreneurship exists in its context as Figure 1.

Here, the role of the entrepreneur is to conceive a business idea in terms of an innovation to be brought successfully to the market and to find the wherewithal to make this happen. Theentrepreneur does not necessarily need to have the design, production or delivery skills (this isthe function of the firm) nor to shoulder all or most of the risk (this is often assumed by the

providers of finance or investors). Indeed, the notion of the entrepreneur as a risk-taking trader, began to be challenged early on by the view of the entrepreneur as an adventurous self-employedmanager capable of combining, to personal advantage, capital and labour. It is interesting to notethat in France today the entrepreneur is a more generic term mainly referring to small propertydevelopers and owners of small construction firms. It would be wrong to state that the element of risk-bearing has completely disappeared from the modern concept of the entrepreneur. Thesuccessful management of risk is an important entrepreneurial attribute. However, it does seemtrue that a swift perception of opportunities and the ability to coordinate the activities of othersemerge as the more central economic skills of the modern entrepreneur.

Austrian economist Joseph Schumpeter (1934), who has had a seminal influence onentrepreneurship, as well as innovation, placed the entrepreneur at the centre of his theory of economic development. Schumpeter defined the entrepreneur simply as someone who acts as anagent of change by bringing into existence a new combination of the means of production. Newcombinations include process, product and organisational innovations. The means of productionincludes capital, equipment, premises, raw materials, labour and, in recent times, information.Currently, knowledge has been added to the list as the indispensable ingredient for businesssuccess in the new millennium.

The essence of Schumpeter's approach is that entrepreneurs are competitive and always strive togain an edge over their competitors. When they begin to consolidate and slow down, they revertto being ordinary managers and, in Schumpeter's terms, are no longer entrepreneurial. Thusattitudes to growth and the actual attainment of growth are essential elements of the concept of entrepreneurship. The attainment part of the concept, of course, implies a high level of

13
http://www.open.edu/openlearn/ocw/mod/oucontent/view.php?id=1451&extra=thumbnail_idp7837008


14/26

managerial competence in all the five stages in Figure 1 and a high competence in social andcommercial interactions outside the firm with other firms, regulators and, above all, customersand consumers. This implies that entrepreneurial firms that innovate successfully and encouragenew innovations are likely to be different from most other firms. They appear to be more openand supportive of different opinions and ideas. If you are developing your own idea as part of an

organisation (or if you feel that your idea will need the combined efforts of a firm for itsimplementation), Activity 1 will help you identify where you need to develop and negotiatesupport both inside and outside the firm. The art of negotiation is a key entrepreneurial skill.

Activity 1

Referring to the characteristics of successful innovation, complete the Characteristics of theentrepreneurial firm checklist.

Before starting this activity you should determine where you are going to record your notes. Youmay choose to maintain a paper notebook. You may, however, prefer to record your thoughtselectronically by using a word processing program.

Consider the ideal firm for bringing your idea to market (or if your ideas have not yetcrystallised, an enterprising group or firm of at least two other people you know). Make a noteabout the purpose of the firm or team before you answer the questions.

Try to answer the following questions (pausing for reflection if you need to.) If the answer isYes write a brief example. If the answer is No, write the main reason. If you are uncertainabout the question click the question mark and an additional explanation of what is being askedwill be revealed.

Reveal answer

The characteristics of entrepreneurial firms that are successful at launching innovations have been widely studied and are reflected in the questions asked in Activity 1 . However, at this stageyou may be a long way off starting, or helping to start, your own firm. The checklist should serveas a useful tool for gauging the innovative support from your current situation and as a guidelinefor the sort of atmosphere that needs to develop in a firm in order to maximise its entrepreneurial

potential. When faced with very real resource constraints, maintaining motivation to set up andrun such a firm can be very tough. The main motivation for entrepreneurs to overcome the

barriers of economic pressure and uncertainty, according to Schumpeter (who was writing in the1930s), were the prospects of upward social mobility into the capitalist class. At the start of the21st century, with the almost universal dominance of market-based economic systems and ahugely increased middle class, the need to cope with the direct and indirect threats of globalisation is now often cited as the spur to innovation. For others, economic survival or thechance to create something of value are the driving motivators. Whatever the personal ambitionsof entrepreneurial small firm owners, their role in introducing innovations and in improvingoverall economic development and efficiency is important.

14
http://www.open.edu/openlearn/money-management/management/business-studies/entrepreneurial-behaviour/content-section-1#fig001http://www.open.edu/openlearn/money-management/management/business-studies/entrepreneurial-behaviour/content-section-1#fig001http://www.open.edu/openlearn/money-management/management/business-studies/entrepreneurial-behaviour/content-section-1#act001http://www.open.edu/openlearn/money-management/management/business-studies/entrepreneurial-behaviour/content-section-1http://www.open.edu/openlearn/money-management/management/business-studies/entrepreneurial-behaviour/content-section-1#act001http://www.open.edu/openlearn/money-management/management/business-studies/entrepreneurial-behaviour/content-section-1#act001http://www.open.edu/openlearn/money-management/management/business-studies/entrepreneurial-behaviour/content-section-1#fig001http://www.open.edu/openlearn/money-management/management/business-studies/entrepreneurial-behaviour/content-section-1#act001http://www.open.edu/openlearn/money-management/management/business-studies/entrepreneurial-behaviour/content-section-1http://www.open.edu/openlearn/money-management/management/business-studies/entrepreneurial-behaviour/content-section-1#act001


15/26

Basically, the concept of development from an economic viewpoint means the growth of goodsand services in an economy usually measured in total or per capita rates of growth in all goodsand services, known as the Gross Domestic Product (GDP) or the Gross National Product (GNP)when nationally owned overseas goods and services are included. In advanced industrialeconomies such as Britain, France, Germany and so on, policy objectives tend to be targeted on

improving economic performance rather than development per se . As an alternative to aneconomic approach, one of the best known psychologically based economic development modelsthat is still very influential, David McClelland's achievement motivation model, pays lessattention to structural factors while the psychological determinants of economic behaviour aremore strongly emphasised:

Some wealth or leisure may be essential to development in other fields the arts, politics, science,or war but we need not insist on it. However, the question why some countries develop rapidly inthe economic sphere at certain times and not at others is in itself of great interest, whatever itsrelation to other types of cultural growth. Usually, rapid economic growth has been explained interms of external factors favourable opportunities for trade, unusual natural resources, or

conquests that have opened up new markets or produced internal political stability. But I aminterested in the internal factors in the values and motives men have that lead them to exploitopportunities, to take advantage of favourable trade conditions; in short, to shape their owndestiny.

(McClelland 1968, p. 74)

McClelland's preferred entrepreneurial motivator, the need for achievement or nAch as it isusually abbreviate a desire to do well, not so much for the sake of social recognition or

prestige, but to attain an inner feeling of personal accomplishment is a more psychologically- based theory. McClelland himself summarised an alternative economic development theory as a

society with a generally high level of nAch will produce more energetic entrepreneurs who, inturn, produce more rapid economic development. However, McClelland was quite disparagingabout the profit motive as the mainspring of entrepreneurial activity:

Since businessmen had obviously shifted their concern from intrinsic worth to money worth,Marx and other economists endowed man with a psychological characteristic known as theprofit motive. The capitalist, at any rate, was pictured as being driven by greed, by thenecessity of making money or keeping up his rate of profit.

That such an assumption is a typical oversimplification of rational or armchair psychology hasrecently begun to be realised by historians in particular who have studied the lives of actual

business entrepreneurs in the nineteenth century. Oddly enough, many of these men did not seemto be motivated by a desire for money as such or by what it would buy.

(McClelland 1961, p. 233)

Box 1 Wall Sreet (1987) Gordon Gekko: Address to TeldarPaper Stockholders

15


16/26

Teldar Paper has 33 different vice presidents, each earning over $200,000 a year. Now, I havespent the last two months analyzing what all these guys do, and I still can't figure it out. Onething I do know is that our paper company lost $110 million last year, and I'll bet that half of thatwas spent in all the paperwork going back and forth between all these vice presidents.

The new law of evolution in corporate America seems to be survival of the unfittest. Well, in my book you either do it right or you get eliminated.

In the last seven deals that I've been involved with, there were 2.5 million stockholders who havemade a pre-tax profit of $12 billion. Thank you.

I am not a destroyer of companies. I am a liberator of them!

The point is, ladies and gentleman, is that greed for lack of a better word is good.

Greed is right.

Greed works.

Greed clarifies, cuts through, and captures the essence of the evolutionary spirit.

Greed, in all of its forms greed for life, for money, for love, knowledge has marked theupward surge of mankind.

Copyright 20012004.American Rhetoric.HTML transcription by Michael E. Eidenmuller.Allrights reserved.

Activity 21. Do you think that profit maximisation is the main motivation to entrepreneurial

behaviour?2. Does profit have to be the main motivation of a successful business owner?

What alternatives or additional motives can you identify Entrepreneurialqualities

It is now widely accepted that, apart from the start up phase, most small firms in Europe aremore concerned about survival rather than growth and relatively few are especiallyentrepreneurial (Gray 1998). Consequently, a lot of research in this field has focused on findingthe characteristics that set entrepreneurs and their firms apart from others. Elizabeth Chell (1985,1999), a social psychologist, has examined numerous psychological trait-based approaches andconcluded that, whilst psychological aspects such as entrepreneurial intention and the abilityto recognise opportunities are strongly linked to entrepreneurial behaviour, the context in whichthe entrepreneur operates is also very important. Entrepreneurship reflects complex interactions

16


17/26

between the individual and the situation, which has to be dynamic because business situationsare always changing.

Perceptions and judgement are, therefore, key elements in this process. Indeed, more than 20years ago, Mark Casson (1982) identified judgement as one of the qualities that distinguishes

the successful entrepreneur from the much larger group of non-entrepreneurial SME owners. Asmentioned before, business judgement can reflect an innate ability but most frequently it directlyderives from experience (or, more accurately, learning from experience). However, pastexperience can also filter out our ability to spot new opportunities or threats. Cultural effectsrelated to family, locality and friends can help us interpret the world but they can also colour what we see. The same may be true of the influences from various networks that business ownersoften belong to (ranging from business associations such as Chambers of Commerce, businessclubs and so on, to more social links related to, say, sport or leisure activities). And, of course,our own expectations and motivations of what we hope for in life, at work and in terms of acareer will affect both judgement and business behaviour. The Open University BusinessSchools (OUBS) has conducted research in this area over the years. The findings from many

different entrepreneurial firms, which reveal various influences and feedback loops on theowner-manager's decision-making, are summarised in Figure 2 . Apart from the effects of thevarious influences that can affect business judgements, the main points to note are:

1. Business situations consist of real challenges, constraints and opportunities that directlyimpact on the business performance of a firm.

2. However, it is how entrepreneurs perceive these that guide their judgments and actions(which is why accurate market information, the ability to learn and experience are soimportant).

3. Business perceptions are also influenced by personal and business motivations, peer pressures and cultural influences (it could be argued that entrepreneur's perceptions aremore closely aligned with reality).

4. Entrepreneurial behaviour is guided by the entrepreneur's expectations rather than a rigidset of strategic objectives (again, it may be that the entrepreneur's expectations are morerealistic and, maybe, more ambitious than those of other business managers).

5. The process is not static but very dynamic with feedback and signals from the marketconsciously and indirectly affecting later decisions and actions.

As each context and set of market signals reflect industry, regional and life-cycle influences, it isdifficult to believe that each entrepreneur needs the same set of skills in order to achieve success.

The model in Figure 2 reflects the uniqueness of the business situation facing each entrepreneur and the key areas where superior judgement will make a difference.

17
http://www.open.edu/openlearn/money-management/management/business-studies/entrepreneurial-behaviour/content-section-2#fig002http://www.open.edu/openlearn/money-management/management/business-studies/entrepreneurial-behaviour/content-section-2#fig002http://www.open.edu/openlearn/money-management/management/business-studies/entrepreneurial-behaviour/content-section-2#fig002http://www.open.edu/openlearn/money-management/management/business-studies/entrepreneurial-behaviour/content-section-2#fig002


18/26

View larger imageFigure 2 Model of entrepreneurial decision making

The influences and processes depicted in the model are complex but so too is the reality of entrepreneurial business. To date, researchers have not been able to identify a core and necessary

bundle of attributes, characteristics or qualities that mark out successful entrepreneurs unerringlyfrom the large crowd of business owners. However, a commonly quoted empirical and desk research study of new venture start-ups, that has stood the test of time over the past quarter-century, was conducted through the Massachusetts Institute of Technology by Jeffrey Timmonsand colleagues (Timmons et al. 1977). They identified 14 important entrepreneurialcharacteristics of successful enterprise owners (see Box 2) which still frequently crop up inentrepreneurship research.

Box 2 Behavioural charcteristics of entrepreneurs drive and energy self-confidence

high initiative and personal responsibility

internal locus of control

18
http://www.open.edu/openlearn/ocw/mod/oucontent/view.php?id=1451&extra=thumbnail_idp7895920http://www.open.edu/openlearn/ocw/mod/oucontent/view.php?id=1451&extra=thumbnail_idp7895920http://www.open.edu/openlearn/ocw/mod/oucontent/view.php?id=1451&extra=thumbnail_idp7895920


19/26


20/26

entrepreneur's self-concept. However, it is equally clear that entrepreneurs will not be the only people sharing these beliefs.

Most reasonably successful students at all levels realise that their own efforts in studying have alot to do with passing. Most people for whom sport is more than just an occasional leisure

activity know the value of expending their own efforts on training and the importance of self-confidence. And in business, most chief executives and reasonably able mid-level to senior managers will be accustomed to obtaining positive responses from their personal interventions. Itseems clear that people who believe that outcomes basically depended on their own behaviour and that they can control their own behaviour will generally believe that the control of events of importance to them ultimately rested internally in themselves. This is clearly linked to self-confidence and the ability to self-motivate. However, people with internal locus of control

beliefs are in the minority. For many people, their lives are deeply affected by the decisions of people in more powerful positions than themselves which, in business, can include strong partners, customers and suppliers (as Porter's five-forces model has identified). Even more pervasive than the belief that powerful others exert a determining control or influence are

widespread beliefs that events are determined by chance or luck. Activity 5 provides you with anopportunity to see where you currently stand (but note that locus of control beliefs are alsoinfluenced by context and can vary over time, especially if success breeds success).

Activity 5

Complete the Entrepreneurial attributes: locus of control questionnaire (clicking on 'Launch in aseparate player' will allow you to enlarge text). This will give you an estimate of your own locusof control belief profile and what dominates internal, external or chance.

Click on one of the three choices, depending on whether you agree or disagree with eachstatement, and your scores for Internal , External and Chance will appear in the respective boxes.

These concepts have been found to be useful in analysing the behaviour and beliefs of successfulentrepreneurs. If you feel you scored too low for your own liking, this is another indication that ateam approach may be best. Indeed, Activity 5 could also be useful in developing a balancedentrepreneurial team (not everyone can be leader with a firm belief in their ability to controldestiny; opportunity often springs from being open to luck and chance happenings and mostgood teams rely on some members being prepared to follow more powerful others). If you wantto boost your feeling of internal locus of control, one suggestion would be to set yourself attainable objectives and push yourself to achieve them. However, it is important to bear in mindthat psychological scales and tests of this kind only ever measure tendencies (not absolute and

immutable behaviour that holds in all circumstances) and never attain anything like 100 per centaccuracy. And, in any case, personal belief and motivation is only one part of the entrepreneurialequation.

3 Entrepreneurial work style

20


21/26


22/26

Figure 4 Kolb's learning styles

Following the flow of the cycle, the learning style in upper right quadrant Kolb labelled thediverger . The diverger is able to see concrete experience from different perspectives and to pulldifferent meanings from experience. Kolb saw people who tend to this style of learning asinventive and creative. This could include entrepreneurs in the creative industries such as designand the media. In the lower right quadrant, the assimilator is attracted to creating models andconcepts, an approach that would be a strength in consultancies and marketing firms. Theconverger in the lower left quadrant has the learning style that prefers to apply rules and to testthem. Kolb saw this as a style that appeals to engineers and technical people. It is also useful ininnovations based on R&D. In the final quadrant accommodators are at ease in working withother people. They like to plan and carry out new activities. According to Kolb, accommodatorsare more prepared to accept risks and this may be the most entrepreneurial learning style.

However, Kolb was at pains to point out that these are not pigeon-holes because people canmove from one style to another depending on circumstances or context. Nevertheless, for many people there is a preferred dominant style.

Activity 6

1. Which style best reflects your own?2. Where would you place yourself on Kolb's grid?

3. What sort of balance of learning styles do you think would best fit your needs?

Reveal answer

Most definitions of the entrepreneur also stress the ability to organise and combine as the keydistinguishing features. This would emphasise the converger's learning style, a conclusion thatshould find support from influential management writer Peter Drucker (1985). He maintains thatinnovation no longer results from chance activities but needs to be managed whether in a big or small firm as an organised and systematic process. This suggests that preferred learning styleswill be directly related to the learning and skills needs perceived at the time and where they work

22
http://www.open.edu/openlearn/money-management/management/business-studies/entrepreneurial-behaviour/content-section-3http://www.open.edu/openlearn/ocw/mod/oucontent/view.php?id=1451&extra=thumbnail_idp7961120http://www.open.edu/openlearn/money-management/management/business-studies/entrepreneurial-behaviour/content-section-3


23/26

in the enterprise value-cycle. Thus, learning styles are also likely to be linked to preferredmanagement and leadership styles.

Generally, management-orientation can be described in terms of three very broad, but notmutually exclusive areas structure (organisational and bureaucratic), people (social and

motivational) and change (entrepreneurial and innovative) (Ekvall, 1991). Management stylesreflect the influences of the management orientation (the requirements of where they manage inthe value chain and individual personality). Very broadly, two main categories are often used todistinguish the main approaches task-focused and people-focused and the associatedleadership styles contrast directive with participative styles. In fact, a basic two-wayclassification is far too simple. The brief discussion above suggests at least five broadmanagement behavioural styles structured (rules and procedures), delegative (happy for subordinates to take some direct responsibility for their own work) standards (set or agreequality and performance standards), merit (praise and reward good work) and supportive (helpfuland enjoy the team's trust). Completing Activity 7 will automatically give you scores on each of these styles (with scores around 50 per cent representing the average, so that a score of above 60

per cent on structured would indicate you like managing by rules or on delegative shows youare comfortable in delegating responsibility).

Activity 7

Complete the Management styles questionnaire, noting your score on each of the five styles.(Clicking 'Launch in a separate player' will allow you to enlarge the text.)

Remember, there is no correct answer, only an answer that is right for you.

Reveal answer

To get a better understanding of the sort of management style that might be the most suitable for the business that is to launch your idea, we need to go beyond different types of management andlook to the role of the entrepreneur as leader. Many managers are mainly administrators or specialists in bounded areas whereas one of the key functions of an entrepreneur is to motivateand coordinate the firm in achieving its goals. Accepting that the main management orientationof the entrepreneur must be to manage change and innovation, in some circumstances this meansthat the entrepreneur also has to be an extremely efficient manager of the day-to-day challengesof competition while, in other cases, administrative functions are delegated and the entrepreneur is required to be an ambassador and leader, with a longer-term perspective. Plotting against theother two management orientations task and people we can identify the five leadership styles inFigure 5 .

The firm that best fits the focus of this course clearly has an innovative leadership style wherethere is a high focus on both people and tasks. The firm is generally seen as a team and is open tocollaborating and sharing with external firms or sources of capabilities. However, researchconducted over the years among small firm owners suggest that most like to see themselves incommand (especially very small firms with, say, less than ten employees) and having a directivestyle. Interestingly, growth-oriented small firms that have a history of growth, and slightly larger

23
http://www.open.edu/openlearn/money-management/management/business-studies/entrepreneurial-behaviour/content-section-3http://www.open.edu/openlearn/money-management/management/business-studies/entrepreneurial-behaviour/content-section-3#fig005http://www.open.edu/openlearn/money-management/management/business-studies/entrepreneurial-behaviour/content-section-3http://www.open.edu/openlearn/money-management/management/business-studies/entrepreneurial-behaviour/content-section-3#fig005


24/26

small firms, are much more likely to see themselves as being one happy family (paternalisticstyle) or having a participative style. The firms that are governed by external rules and

procedures, have a comparatively low people and task focus and generally have a structuredmanagement style that does not encourage innovation (though in some professions there can be astrictly limited delegation).

View larger imageFigure 5 Leadership styles

Activity 8

1. Which leadership style best reflects your own?2. Taking your scores on Activity 7 and your own reflections into account, where would

you place yourself on the leadership grid?

3. Considering the needs of the firm that will launch your entrepreneurial idea, where doyou feel you should be on the grid?

4. If they are different points on the grid, what do you think needs to be done in order tomove you to where you feel you should be?

In looking ahead to the launch of a successful entrepreneurial idea, we have already highlightedthe importance of social process in innovation so it is important to avoid getting too fixated only

on the role and capabilities of the entrepreneur. As Figure 2 (Entrepreneurial decision-making) inSection 2 implies, it is the overall capacity of firms, real and perceived, rather than just theindividual abilities of their owners, managers or employees that determine the scope of their activities. Perceptions of their own and their staff's capabilities plus their perceptions of competitors capabilities has an important part to play in determining small firm ownersexpectations of success. However, there are also likely to be cultural factors of a more generalnature which influence perceptions of desired abilities, resources and skills. Entrepreneurs maywell be able to identify crucial skills and tasks more accurately than other small business

24
http://www.open.edu/openlearn/ocw/mod/oucontent/view.php?id=1451&extra=thumbnail_idp7993008http://www.open.edu/openlearn/money-management/management/business-studies/entrepreneurial-behaviour/content-section-2#fig002http://www.open.edu/openlearn/money-management/management/business-studies/entrepreneurial-behaviour/content-section-2#fig002http://www.open.edu/openlearn/ocw/mod/oucontent/view.php?id=1451&extra=thumbnail_idp7993008http://www.open.edu/openlearn/ocw/mod/oucontent/view.php?id=1451&extra=thumbnail_idp7993008http://www.open.edu/openlearn/money-management/management/business-studies/entrepreneurial-behaviour/content-section-2#fig002


25/26

managers. Entrepreneurs can also be defined in terms of their ability to perceive and to respondto these changes more quickly than other business managers. With reasonable feedback, it isrelatively straightforward to discuss opportunities and to identify the gaps between reality and

perception. However, customer and consumer needs are often ill defined, hidden from view anddifficult to quantify Certainly, the perception of many lower level needs (either the needs of

entrepreneurs or of customers) are even more strongly determined socially through broad culturalor more immediate occupational influences.

It seems reasonable to hold that effective business judgement reflects the correspondence of anindividual's perceived capacities, opportunities and threats to their objective possibilities and theindividual's ability competence) to act upon that information (as in Figure 2 ). It is not toodifficult to then interpret the list of common entrepreneurial behavioural characteristics in Box 2 in terms of business competence. The successful entrepreneurial firm needs the right balance of competences in the team as a whole rather than seeking them in a single individual. Modernmanagement theory is certainly moving in this direction and away from older hierarchical,scientific management or management-by-objectives models. In reality, your leadership and

management styles will be determined by what you feel most comfortable with and what youfeel is the norm in the circumstances (but remember that the people you are dealing with alsohave their feelings about what is a normal management or communications style for thecircumstances). By now we shall assume that you have worked out many of these issues to your own satisfaction but, if you need more help, the following activity on teamwork issues may helpyou consider them more systematically.

Activity 9

Complete the Teamworking ability checklist.

Consider the last time you worked with or managed a group of at least two other people(preferably but not necessarily one related to business or work).

Write a brief 12 line description of the group or team.

Try to answer the following questions (pausing for reflection if you need to). If the answer isYes, write a brief example. If the answer is definitely No, write the main reason but if you areuncertain about the question or answer Don't know click the question mark to read anadditional explanation of what is being asked.

Reveal answer Previous: 2 Entrepreneurial qualities

Next: 4 Key points

4 Key pointsThe important points this unit has covered include:

25
http://www.open.edu/openlearn/money-management/management/business-studies/entrepreneurial-behaviour/content-section-2#fig002http://www.open.edu/openlearn/money-management/management/business-studies/entrepreneurial-behaviour/content-section-2#box002http://www.open.edu/openlearn/money-management/management/business-studies/entrepreneurial-behaviour/content-section-3http://www.open.edu/openlearn/money-management/management/business-studies/entrepreneurial-behaviour/content-section-2http://www.open.edu/openlearn/money-management/management/business-studies/entrepreneurial-behaviour/content-section-2http://www.open.edu/openlearn/money-management/management/business-studies/entrepreneurial-behaviour/content-section-4http://www.open.edu/openlearn/money-management/management/business-studies/entrepreneurial-behaviour/content-section-4http://www.open.edu/openlearn/money-management/management/business-studies/entrepreneurial-behaviour/content-section-2#fig002http://www.open.edu/openlearn/money-management/management/business-studies/entrepreneurial-behaviour/content-section-2#box002http://www.open.edu/openlearn/money-management/management/business-studies/entrepreneurial-behaviour/content-section-3http://www.open.edu/openlearn/money-management/management/business-studies/entrepreneurial-behaviour/content-section-2http://www.open.edu/openlearn/money-management/management/business-studies/entrepreneurial-behaviour/content-section-4


26/26

Defining the entrepreneur in terms of economic function and role. Identifying the key characteristics of successful entrepreneurs and entrepreneurial firms.

Considering the role of entrepreneurial motivation in decision making and business behaviour.

Identifying leadership and management styles appropriate to an entrepreneurial firm

Considering the entrepreneurial team needed to support your idea.

Key research questions for the

study of theentrepreneurial process Key researchquestions for the study of entrepreneurship Focused onthe entrepreneur Focused on the entrepreneurial process 1. Who

become entrepreneurs? 2. Why do people becomeentrepreneurs? 3. What are the characteristics of successfulentrepreneurs? 4. What are the characteristics of unsuccessfulentrepreneurs? 1. Whats involved in perceiving opportunitieseffectively and efficiently? 2. What are the key tasks insuccessfully establishing new organisations? 3. How are thesetasks different from those involved in successfully managingongoing organisations? 4. What are the entrepreneurs uniquecontributions to this process?

From: Bygrave and Hofer (1991) Entrepreneurialbehaviour

26

Entrepreneurial Behaviour in Family Education

Documents

Transcript of Entrepreneurial Behaviour in Family Education